There are nearly 260,000 domestic workers in Singapore, with approximately 50% of them coming from Indonesia. To ensure fair treatment their domestic workers face abroad, the Indonesian government has put into place several protection measures like the S$6,000 performance bond. However, starting in January 2021, the Indonesian government will charge a new one placement fee of S$3,000 to help cover the cost of bringing people into Singapore. In this article, we explain some of the reasons for the implementation of this law, and what this will mean for you as an FDW employer.
Reason for Implementation
The Indonesian government has primarily implemented this law to help pay for the transportation, accommodation and medical fees incurred by new FDWs. Previously, an estimated S$6,582.02 was borrowed by the worker to cover those costs, which disproportionately affects their stream of income and potential remittances for the duration of their debt. For example, one...